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description

This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.

As dramatic changes in technology and customer tastes roil the music industry, the top executives of BMG Entertainment, one of the world's largest record companies, must decide how to organize for digital distribution of music. This case includes a brief history of the music industry, a description of the industry's current structure and economics, and a description of digital downloading efforts.

learning objective:

Designed to be taught as part of a module on strategy making under uncertainty. To analyze BMG's internal organizational structure, its posture toward technology vendors, and its choice of target customers.